Given all this good news, however, the markets are now at a point where they are "allowed" to see an obligatory one or two day snapback of to or toward the various resistance lines that have been broken in these same A/D measurements, but bigger picture wise, the path of least resistance remains firmly higher at this time until proven to the contrary.

Well, we got pretty much got as expected with the small caps and secondaries taking the blunt of Wednesday's and Thursday's market pullback in what looks to be a typical "pause to refresh" correctional sequence.

Much of the breadth weakness we did see came again with the Precious Metals and XAU advance/decline lines, as well as, the NYSE REIT and Bond CEF's advance/decline lines. This kind of action would suggest that although the FED continues to "state" that they will continue to be highly accomodative in their policy decisions, the market believes that monetary policy will actually be tightening over the next several months. Whether there is a near term loss of translation here or not will only be known in the fulness of time, but technically speaking, this weeks A/D chart array provides an overall opinion of indecision at this time. It should also be duly noted that on Wednesday the yield on the 10 year note precisely hit its 2.47% pattern support level intraday before settling at 2.53% at the close and 2.62% on Friday.

Other that that, there isn't much more to report this week though we lost quite a bit of strength in the BETS indicator as it moved from a +60 to a +45 on the back of the weakness in the AMEX marketplace. But given the buoyancy that we continue to see in many of the equity related A/D lines, we'll continue to look for the bulls to provide any near term surprises that we may see next week.

"As for it being different this time, it is different every time. The question is in what way, and to what extent" - Tom McClellan

"An economist is someone who sees something happen, and then wonders if it would work in theory" - Ronald Reagan

"What we see depends mainly on what we look for" - John Lubbock

"The eye sees only what the mind is ready to comprehend" - Henri Bergson

“Answers are easy; it’s asking the right questions which is hard” - Dr. Who - 1977

"You know the very powerful and the very stupid have one thing in common - they don't alter their views to fit the facts, they alter the facts to fit their views (which can be uncomfortable if you happen to be one of the facts that needs altering)" - Dr. Who - 1977

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